Correlation Between Zijin Mining and Gaztransport Technigaz
Can any of the company-specific risk be diversified away by investing in both Zijin Mining and Gaztransport Technigaz at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Zijin Mining and Gaztransport Technigaz into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zijin Mining Group and Gaztransport Technigaz SA, you can compare the effects of market volatilities on Zijin Mining and Gaztransport Technigaz and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Zijin Mining with a short position of Gaztransport Technigaz. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Gaztransport Technigaz.
Diversification Opportunities for Zijin Mining and Gaztransport Technigaz
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Zijin and Gaztransport is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and Gaztransport Technigaz SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaztransport Technigaz and Zijin Mining is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Zijin Mining Group are associated (or correlated) with Gaztransport Technigaz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaztransport Technigaz has no effect on the direction of Zijin Mining i.e., Zijin Mining and Gaztransport Technigaz go up and down completely randomly.
Pair Corralation between Zijin Mining and Gaztransport Technigaz
Assuming the 90 days horizon Zijin Mining Group is expected to under-perform the Gaztransport Technigaz. In addition to that, Zijin Mining is 2.08 times more volatile than Gaztransport Technigaz SA. It trades about -0.07 of its total potential returns per unit of risk. Gaztransport Technigaz SA is currently generating about 0.19 per unit of volatility. If you would invest 13,250 in Gaztransport Technigaz SA on August 28, 2024 and sell it today you would earn a total of 890.00 from holding Gaztransport Technigaz SA or generate 6.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. Gaztransport Technigaz SA
Performance |
| Timeline |
| Zijin Mining Group |
| Gaztransport Technigaz |
Zijin Mining and Gaztransport Technigaz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Gaztransport Technigaz
The main advantage of trading using opposite Zijin Mining and Gaztransport Technigaz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, Gaztransport Technigaz can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Gaztransport Technigaz will offset losses from the drop in Gaztransport Technigaz's long position.| Zijin Mining vs. Superior Plus Corp | Zijin Mining vs. NMI Holdings | Zijin Mining vs. Origin Agritech | Zijin Mining vs. SIVERS SEMICONDUCTORS AB |
| Gaztransport Technigaz vs. CompuGroup Medical SE | Gaztransport Technigaz vs. Apollo Medical Holdings | Gaztransport Technigaz vs. Clearside Biomedical | Gaztransport Technigaz vs. MEDICAL FACILITIES NEW |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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